Equatorial Guinea's Ministry of Mines and Hydrocarbons has extended the closing date of its 2016 Licensing Round, due to a "wave of new exploration interest" thanks to a more positive outlook in the industry.
The round, offering "all remaining deep and ultra-deepwater blocks" in the west African country, was originally announced in 2015, then opened in June last year. In total, 37 blocks are on offer, 32 of which are offshore. The acreage includes the Block A-12, which was relinquished by Marathon Oil. Block A-12 is adjacent to the Marathon-operated Alba field, 20mi offshore Bioko Island.
The former EG-05 block was also opened. EG-05 was once operated by Glencore and has been split into four prospective offshore licenses, which have never been drilled.
The new closing date for licensing round is 28 April. Winning bids are due to be announced on 5 June and new production sharing contracts signed on 15 September. “We can see that the industry as a whole is turning the corner and that the appetite for exploration is greater starting 2017 than it was last year,” said H.E. Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons. “There is more stability and predictability in the market right now, which we can see is increasing investor confidence.”
Last month, Equatorial Guinea announced its interest to join the Organization of Petroleum Exporting Countries. It has pledged to cut 12,000 b/d of oil production, to "demonstrate its commitment to stabilizing global markets."
To date, there have been 51 discoveries in the country, with 38% exploration success, according to the country's Ministry of Mines and Hydrocarbons.
The country's first production was at the Alba field in 1991. Production in the country peaked at 358,000 b/d in 2005. The latest fields in production were the Aseng and Alen gas and condensate fields, brought online in 2011 and 2013, respectively, taking the number of operating fields/complexes to six.
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